Ready to move to Tennessee and call yourself a Butternut? Don’t worry—you don’t actually have to take the unofficial Tennessean nickname. But if you are relocating to the Volunteer State, there are several homebuyer programs to help make homeownership a reality. Some programs are for first-time homebuyers only, but others are open for repeat buyers. Thus, plenty of people can apply for these opportunities.
Who Qualifies as a First-Time Homebuyer in Tennessee?
Nationally, the agreed upon definition of a first-time homebuyer is someone who hasn’t owned a home within the last three years. This opens doors for more people to apply.
Statewide First-Time Homebuyer Programs
Great Choice Home Loans
Organized by the Tennessee Housing Development Agency, the Great Choice Home Loans program provides assistance to approved borrowers in the form of a fixed interest rate mortgage and additional down payment assistance. This first-time homebuyer program does have income and credit score limits, and applying for assistance requires attending a homebuyer education class. Visit the THDA website for more details.
Homeownership for the Brave
This is another program through Great Choice Home Loans with additional added benefits for active duty military and National Guard, as well as honorably discharged veterans. The additional benefits include a reduced interest rate, and the opportunity to borrow up to 100 percent of a home’s purchase price, meaning no down payment is required. A bonus is the first-time homebuyer requirement is waived. Learn more about this program on the TDDA’s Active Duty Military and Veterans website.
Location-Specific First-Time Homebuyer Programs
Chattanooga, Tennessee
If you’re purchasing within the limits of the City of Chattanooga, there is a city-funded down payment assistance program to help secure funds toward a home. Additionally, the Chattanooga Neighborhood Enterprise offers down payment assistance of up to 5 percent of the purchase price; this allows those looking to buy near the Chattanooga area—but outside city limits—to apply for assistance. To learn about either program, visit CNE’s official website.
Clarksville, Tennessee
On the border of Tennessee and Kentucky, the City of Clarksville is only about an hour outside of Nashville. First-time homebuyers can apply for financial assistance toward down payment and closing costs with the city’s program. Income limits apply, so visit the Clarksville’s First-Time Homebuyer Program webpage for more details.
Memphis, Tennessee
Known for its music and barbecue, the City of Memphis also offers down payment of up to 10 percent of the sales price of the home. Income and credit limits apply, and there are additional incentive programs for first responders and educators. Check out all of the programs and requirements at Memphis’ Housing and Community Development website.
Shelby County
While the above Memphis program is only available for properties within city limits, Shelby County has a separate down payment program that covers properties within the county but outside of Memphis. Qualifying cities include Collierville, Millington, Lakeland, Germantown, Bartlett, and Arlington. Check out the Shelby County website for more details.
Become a Part of Music History
Plenty of great musicians have graced Tennessee with their presence, and the lively culture and beautiful scenery only adds to the appeal. If you’ve been dreaming of being a homeowner in Tennessee, statewide and local programs are ready to help make that goal a reality.
The links on this site were researched by NewHomeSource. This is as cohesive a list as possible. Individual homebuyers should contact entities to fully understand requirements and processes.
Kian Zozobrado joined Builders Digital Experience (BDX) in 2019 as a content writer. A graduate of Southwestern University with a degree in English, Kian is passionate about the written word and making connections. Outside of work, Kian also serves as president of the Board of Directors for the Writers’ League of Texas.